President seeks to empower councils financially: Minister

Minister of Local Government Adam Shareef Umar has stated that President Dr Mohamed Muizzu is taking steps to enhance the decentralisation system and provide councils with greater financial authority.

The minister made the remarks following the approval of a government-backed amendment to the Local Government Authority Act by the Parliament. The amendment limits the financial powers of local councils. It was passed despite objections from opposition members and several councils.

In a post on social media, Minister Shareef outlined the President’s initiatives to support councils. He cited examples such as granting uninhabited islands to councils, holding discussions with council representatives during island visits, and revising government projects based on councils’ recommendations.

He said these actions reflect the President’s efforts to strengthen the decentralisation framework and allow councils to take on broader responsibilities.

“Increasing councils’ financial authority and ensuring responsible use of funds will reinforce the decentralisation system and public trust,” said Shareef.

Over 50 island and atoll councils have issued statements opposing the amendment.

These councils argue that the amendment effectively reduces their powers, especially during the final year of their five-year term. They say this could obstruct their ability to fulfil legal obligations and implement planned projects.

Some councils have expressed concern that the changes may limit their ability to serve communities and restrict avenues for generating revenue.